Corestate joins Soravia in €430m Vienna housing JV

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Swiss-based private equity group Corestate Capital is joining forces with Austrian developer and investment firm Soravia Group to develop four high-rise buildings in Vienna representing a total investment volume of €432m.

The plans for the so-called Danube Flats are to realise two distinct ensembles offering a total of 1,350 apartments, as well as office and commercial units. The complex will also include concierge services, preschools, gyms and roof-top gardens, with completion scheduled for 2019. The project is on the New Danube on the site of the former Cineplexx.

One of the buildings will reach a height of 150 metres, making it the highest tower block in Europe's German-speaking countries, Corestate said in a statement.

'Due to the high share of flats that are either in need of refurbishment or just old, and due moreover to the rise in incoming migration to Vienna, there is an enormous demand in the city for new and modern housing accommodation,' said Thomas Landschreiber, Corestate Capital's chief investment officer.

He added: 'The high number of apartments already reserved at both projects ahead of the start of construction suggests as much. These property developments reflect our focus on unique investment situations that promise attractive rates of return across Europe.'

Since its founding in 2006, the Zug-based Corestate Capital has invested more than €2.9bn in direct and indirect real estate, primarily for family offices and institutional investors.

The family-owned Soravia has completed over 500 projects worth over €3.3bn in Austria and eastern Europe. Last October it opened an office in Munich to promote Vienna property opportunities to German investors.